The Fair Labor Standards Act (FLSA) is a landmark law protecting employees’ rights in the United States that went into effect during the Great Depression. The FLSA establishes a national minimum wage, guarantees overtime pay in certain jobs, and sets standards for employee pay.
Your rights under the Fair Labor Standards Act (FLSA)
The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. When an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
The FLSA defines what “hours worked” are compensable work time. Hours worked typically include all the time when an employee is required to be on the employer’s premises, on duty, or at a workplace. The FLSA sets the standard workweek at 40 hours.
The FLSA requires that covered non-exempt employees must receive overtime pay for hours worked over 40 per workweek at a rate not less than one and one-half times their regular rates of pay for the overtime hours.
The FLSA distinguishes an employee from an independent contractor, as well as exempt employees from non-exempt employees. A non-exempt employee is entitled to FLSA rights such as minimum wage and overtime.
Tips & Gratuities
The FLSA allows employers to apply employees’ tip earnings toward their minimum wage obligations, provided they pay tipped employees a cash wage of at least $2.13 an hour and they notify the employees of the tip arrangement. Any cost difference between the combined tip pay and the federal minimum wage must be covered by the employer.
Questions about the Fair Labor Standards Act (FLSA)?
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